Pound Trades Sideways as Brexit Deadlock Persists Ahead of BoE

The British pound today traded in a range amid a lack of any major Brexit headlines or macro releases to push the cable in either direction. Investors were waiting for the outcome of Theresa May‘s visit to Northern Ireland in order to determine the currency pair’s future direction.
The GBP/USD currency pair today declined to hit a low of 1.2924 before rallying and hitting a high of 1.2980 and was trading near this level at the time of writing.
The currency pair opened today’s session in a tight consolidative range before heading lower in the late Asian session driven by negative investor sentiment. The pair then quickly rallied higher as rumors emerged that some cabinet ministers were secretly planning to delay Brexit by eight weeks, an option that PM May has adamantly refused. The cable remained within this range as investors waited for more Brexit developments even as the chances of both parties reaching a deal before Brexit day become more unlikely as time passes.
Investors are currently waiting to find out whether Theresa May’s visit to Northern Ireland to meet Arlene Foster the DUP leader was successful. The cable has been on a downtrend for the past four sessions as the impact of weak UK PMIs has rattled investors who have sold the pound as the uncertainty around Brexit intensifies.
The currency pair’s future performance will be significantly affected by the Bank of England‘s monetary policy decision and its accompanying statement tomorrow.
The GBP/USD currency pair was trading at 1.2966 as at 14:51 GMT having risen from a low of 1.2924. The GBP/JPY currency pair was trading at 142.28 having rallied from a low of 141.74.

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